htttp://www.capgeminisupertechiesshow.com Capgemini Super Techies Show Season 2: The Unilever Challenge Presentation

1. The Unilever Challenge
Suggest an appropriate low cost, easy-to-set up, and easy-to-use
technology solution that helps effectively tackle the increased
assortment of complexity, rising costs and declining profitability

2. The Facts
• India’s largest FMCG company
• More than 75 years of experience in India
• Employs 16000 people
• Products touch the life of 2 out of 3 Indians everyday
• Market capitalization of more than $17.72 billion
• Turnover in 2012–13: Rs. 25,206 crores
• HUL landscape:
o ~40 factories
o ~ 60 depots
o ~2900 customers
o ~6M outlets
o ~1.2 BN consumers

3. • Stock:
– No customized product offering or pricing
– Absence of formal category management and planograms
– No organized stock management
• Sales:
– The Retailer searches for the products on his shelf based on consumer
requests
– Home delivery offered for large purchases
– Over the counter for individuals items
– Significant products weighed and sold
Background on Challenge – Current
Reality

4. Background on Challenge – Current
Reality
• Finances:
– Payment is through cash only
– Credit is offered on a monthly basis for regular customers
– Manual book keeping
• Marketing:
– Manual merchandising
– Formal customer relationship marketing missing
– No in-store marketing available
• Purchase:
– The Retailer purchases different products from various CPG companies and
local manufacturers
– Payment is typically done on delivery

5. Background on Challenge – Current
Reality
• The Indian ‘Kirana’ (small retail store) remains largely unchanged since 60 years
• Over a quarter of a billion shopper transactions go unrecorded each day in
distributive trade even as the battle for the shopper intensifies
• The ‘kirana’ store struggles to hold on to its shoppers, while managing an
increased assortment of complexity, rising costs and declining profitability

6. The problem at play here is an assortment of several
different issues.
• More competition from modern trade stores
• Changing customer behavior in terms of wanting more choice
• No organized shelf space for stocking products
• Poor infrastructure within the store
• Increased assortment of products
• Inability to engage customers by product interaction
• Increasing rents of premises and cost of labor
• More stringent tax requirements
• Inability to track changing prices
The Problem

7. Suggest an appropriate low cost, easy-to-set up, and easy-to-use
technology solution that meets the following criteria:
• Has a high return-on-investment (ROI) to excite the retailer
• Has low maintenance and operational costs
• Has the ability to run with minimal infrastructure requirements
• Comes with minimal training requirement
• Does not interfere with the employees’ day-to-day operations
• Has a modular design to prevent a single point of failure
• Is compatible with multiple store configurations
The Challenge Statement

8. Important Points to Remember
The success criteria of the solution would be evaluated on how
the following metrics impact the retailer:
• Higher sales
– Through relevant assortment
– Better profitability
• Lower cost
– Higher stock rotation
– Replenishment
• Customer loyalty
– Customer-specific promotions
– Loyalty program and points redemption